Option-Adjusted Spread: How OAS Measures Bond Risk
Learn what Option-Adjusted Spread (OAS) is, how it strips embedded call risk from bond yields, and why credit investors use it to value corporate bonds.
Learn what Option-Adjusted Spread (OAS) is, how it strips embedded call risk from bond yields, and why credit investors use it to value corporate bonds.
Learn how callable bonds work, why issuers redeem debt early, how to calculate Yield to Call vs. YTM, and how call protection impacts investor returns.